ASTANA – The European Bank for Reconstruction and Development (EBRD) has arranged a financing package of $200 for private oil company KOM Munai to finance new environmentally technologies and improvements to the efficiency of its oilfield operations in Kazakhstan.
KOM Munai, a subsidiary of OMV Petrom SA, Romania’s largest oil and gas company and a former investee of the EBRD, operates in Kazakhstan’s Mangistau region. It is embarking on a three-year programme to incorporate state-of-the-art water management and drilling technology, which is expected to save water and cut drilling time. The company is also looking into replacing its gas-to-power turbines. The EBRD will finance half the project cost, syndicating the other half to commercial banks.
EBRD Director for Energy and Natural Resources in Russia and Central Asia Aida Sitdikova said, “We are pleased to support projects in Kazakhstan that promote sustainability and reduce environmental impact. The project with KOM Munai will promote the application of modern technologies in resource management, which will save water and reduce carbon emissions. This will be the first time that such advanced technologies – beyond what is required by national regulation – are applied in Kazakhstan. We are happy to support a longstanding client’s activities in two of the countries where the EBRD works – Kazakhstan and Romania.”
The syndicated loan, KOM Munai’s Managing Director Thomas Melvin Quigley said, “aims to diversify the financing sources for our activities in Kazakhstan.”
“We highly value the EBRD’s support for the implementation of state-of-the-art technologies, which will help to reduce our environmental footprint,” he said.
The EBRD has invested close to $6.5 billion into Kazakhstan’s economy, with more than half of its investment in the private sector.